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Temporary residents working in Australia under an appropriate visa generally accumulate super. That means super remains locked up with the fund or the Australian Tax Office (ATO) if the visa expires or is cancelled and you leave Australia. The good news is the DASP system can provide a way to receive super as a lump sum after leaving the country.

An ‘appropriate visa’, according to the ATO, is any temporary resident visa not from retirement subclasses 405 and 410 and holders of these visas are usually entitled to super just like any eligible worker in Australia, subject to the same preservation rules.

Whether your super is being held by a fund or the ATO will depend on how long it’s been since you left Australia without claiming a DASP; if it’s been six months or more since you left Australia, your visa has ceased to be in effect and you have not claimed DASP, your super fund(s) is required to transfer your balance to the ATO as unclaimed super money (USM). According to the ATO, you can apply for a DASP regardless of who has your super, however you may have to use a different application method.

It can be tempting to overspend by striving to keep up when others around you are spending big on houses, holidays and luxury items. However, this is rarely wise. Be especially careful of overspending on your house or car and make sure you don’t accumulate more liabilities than you can afford. It’s also important to avoid falling into the trap of overspending as you earn more by using increased cash flow wisely.

By reviewing and resetting your budget, tracking your spending, taking care of credit card debt, boosting your credit rating, setting savings goals and understanding your financial options you can prevent yourself from overspending.

The Productivity Commission is an independent body, established to provide research and advice to the Government across all issues affecting the Australian population. The Commission was requested by the Treasurer, Scott Morrison, to investigate the superannuation industry, with a particular eye on their efficiency and competitiveness.

A cap on admin and investment fees on low balance super accounts (with less than $6,000) at 3% to prevent low super balances from being eroded by fees. This may see fees reduce for some fund members. A ban on all super fund exit fees. According to APRA, super members lost approximately $52m in exit fees in 2016/17.

A super pension provides you with steady payments, while usually still allowing you to make a lump sum withdrawal if you need to. One of the advantages of a super pension is that many kinds allow you to keep your money invested within the super system. Further, according to the Australian Taxation Office if you start a super pension while qualifying for a condition of release, like reaching 65 years old and retiring, the earnings your investments make will typically be tax exempt.

The exact amount is determined by your age and circumstances, but the chart below shows the general rules. However, there is no maximum withdrawal limit.

You can schedule your pension payments as frequently as you like – annually, half-yearly, quarterly or monthly – meaning that you can use what works best for you. Additionally, any remaining money in your pension account when you die will be paid to you nominated beneficiary.

A superannuation proceeds trust is a type of testamentary trust established solely to receive superannuation proceeds on the death of a fund member. The trust can be established by your will or in some cases, by deed after your death.

A superannuation proceeds trust is similar in operation to other trusts set up in a will, with one significant difference; to be tax-effective, the beneficiaries are limited to persons who were your death benefit dependants as defined by the tax laws. As explained on the ATO website, this list is slightly different to the meaning of ‘dependant’ under the super rules, and includes the following people:

• your de facto or legal spouse;
• your former de facto or legal spouse (if you have one);
• your child aged under 18 years;
• someone who was in an “interdependency relationship” with you;
• or someone financially dependent on you just before your death.

Under the super laws, a super fund trustee generally has discretion to decide when and to whom to pay a death benefit. To create a superannuation proceeds trust, you will usually have to create a valid binding death benefit nomination in favour of your legal personal representative. This means your superannuation fund trustee must pay your death benefit into your estate, where it will be used to create the superannuation proceeds trust. Your will should contain special provisions and clauses to allow this to happen. It’s really important to get good legal advice if this is something you want to do, so your plans don’t have any unintended consequences such as increased tax or potential beneficiaries missing out on receiving a payment.

If you don’t have provisions in your will, it can still be possible to create a superannuation proceeds trust by deed, but the rule are much more complex. For example, not every super fund’s trust deed supports the establishment of a superannuation proceeds trust in this manner. There are additional restrictions under the superannuation and tax laws that apply to a superannuation proceeds trust created by deed that don’t apply to one created under a will. Navigating these rules can cause much more stress for your family compared to having the right provisions in place in your will before your death.

You should also check with your super fund about their approach to superannuation proceeds trust, and whether your super fund is providing you with the most value possible.